Fleetwood downgraded

The situation is getting better but the improvements are now reflected in Fleetwood's share price.

Fleetwood’s share price has been on a tear; it has almost doubled since March and is up more than 40% in the past 12 months. As we highlighted in Fleetwood: stumbling but standing and Fleetwood starts to turn, the business is improving, with new RV launches and a well-performing manufactured accommodation business.

Fleetwood generates high cash flow, has fixed its balance sheet and is now poised to generate better returns. Although things appear rosier, those conditions are reflected in a higher share price which has stormed through our recommendation guide. We are downgrading Fleetwood to HOLD

Note: The Intelligent Investor Growth Portfolio owns shares in Fleetwood. You can find out about investing directly in Intelligent Investor and InvestSMART portfolios by clicking here.

Disclosure: The author owns share in Fleetwood.


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